The present invention relates generally to methods and systems for managing inventory. More particularly, the present invention relates to methods and systems for managing inventory by determining a safety stock quantity of goods within an availability check of a required quantity of goods.
Today, the success of a business company depends essentially on the requirement that customer demands on goods and/or services be fulfilled precisely, cost-efficiently and in time. Therefore, many companies make use of a supply chain management system to control and optimize their production and delivery processes.
Supply chain management may comprise the process of controlling the flow of goods, services, information and/or finances between the involved parties such as manufactures, suppliers, wholesalers, retailers, and consumers. This process may include, among others, order processing, information feedback, and timely delivering the ordered goods and/or services.
One part of the supply chain management is the administration of the inventory in several warehouses, whereby the warehouses can be located with each participant, e.g. manufacturer, dealer or middleman, which is involved in the supply chain. In this supply chain, a participant can act either as a supplier or as a customer.
Any inventory shortage in the supply chain could have negative effects on the efficiency of the business, including production delays, missed order deadlines or disability to meet customers demand. Therefore, it is a basic task of the administration of the inventory to provide a minimum inventory, called the safety stock quantity, to prevent an inventory shortage in the supply chain.